Heat pumps are considered some of the most energy-efficient solutions for year-round comfort in your home. Not only do they help lower your monthly electricity bill, but they also free up valuable space as they’re much smaller than traditional heating and cooling systems.
What’s even better, right now the Inflation Reduction Act provides rebates of a maximum of $8,000, making new installation even more affordable. What are you waiting for? Contact the experts at Stieferman Heating Company Inc to request heat pump installation in Jefferson City.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was created to reduce the impact of inflation on the country. One of the ways it does that is by funding green technology and making sustainable HVAC systems more affordable.
Homeowners can benefit from major rebates and tax credits when they purchase energy-efficient upgrades including heat pumps. Now's the perfect time to go green!
How Will the Inflation Reduction Act Affect Me
The Inflation Reduction Act helps lower residential energy costs by making heat pumps and other energy-efficient home upgrades more affordable. It does that in the form of rebates and tax credits.
When it comes to the Inflation Reduction Act heat pump rebates and tax credits, you have two main options for saving money. Which program you use is dependent on your income.
The two programs available are:
- Inflation Reduction Act heat pump rebate
- Inflation Reduction Act heat pump tax credit
What Is the Inflation Reduction Act Heat Pump Rebate
The heat pump rebate available from the Inflation Reduction Act is for low-income and moderate-income homeowners. The rebate covers 100 percent of the cost of heat pump installation for low-income homeowners and up to 50% percent for moderate-income homeowners.
The rebate can't exceed $8,000 for both low-income and moderate-income homeowners. It is a point-of-sale rebate, which means you deduct the rebate from the initial purchase price of the heat pump.
The income criteria are:
- Low Income: Less than 80% of the area median income
- Moderate Income: 80-150% of the area median income
Uncertain which income category you're in or what the average income is in your area? The nonprofit group Rewiring America has an online calculator you can use to find out. Just provide your ZIP Code and household income.
What Is the Inflation Reduction Act Heat Pump Tax Credit
For homeowners whose income is too high to qualify for a heat pump rebate, there is an Inflation Reduction Act heat pump tax credit. Along with the ability to redeem the credit for up to 30 percent of the purchase or installation of a heat pump, the heat pump tax credit is worth a maximum of $2,000.
Different from the rebate, which is available at the time of purchase, the tax credit is received once you have filed your taxes.* Hold onto the receipt, because the credit can be claimed the same year the heat pump was purchased.
*Consult with a tax professional for full details on how to apply
Which Models of Heat Pumps Qualify for the Inflation Reduction Act
The Inflation Reduction Act heat pump tax credits and rebates only apply to the purchase and installation of energy-efficient heat pump models.
At the very least, a heat pump needs to have ENERGY STAR® certification for the rebate or tax credit to apply. Additional details are available from our team at Stieferman Heating Company Inc.
How Do I Get the Inflation Reduction Act Rebate
For qualifying homeowners, the heat pump rebate in the Inflation Reduction Act can be earned after purchasing the heat pump. You get it right away since it's deducted from the price of purchase and installation of the heat pump. There’s no need to send in a proof of purchase or wait for a rebate to come later.
The Inflation Reduction Act heat pump tax credit, on the other hand, must be received after you file taxes.* It decreases the total amount of money you owe the government once you file taxes.
*Consult with a tax professional for full details on how to apply
Contact the Comfort Pros at Stieferman Heating Company Inc to Learn More About the Inflation Reduction Act Heat Pump Rebate and Tax Credit
With the energy efficiency of a brand-new heat pump, you can save money and do your part for the environment thanks to tax credits and rebates from the Inflation Reduction Act. Stieferman Heating Company Inc is here to help with all of the details on these discount programs so you receive the greatest savings possible! Our certified team is ready to help make your next heat pump installation Jefferson City a seamless experience.